Home sales in Richmond for July, 2014 totaled 406 units were 3% lower than the previous month’s sales of 420 homes, and at just one home higher than the 405 units sold a year ago. The past 3 months sales signaled the market peaking for the year, and seasonally, a gradual reduction in sales can be expected the next 3 months. Total active listings appeared to have plateaued just under 2,400 homes. View Richmond homes for sale here.

The months of inventory (MOI) for the 3 housing types in Richmond improved slightly from 6.13 to 5.78 months of supply. Detached homes in Richmond under $1,000,000 fared very well with just 3.1 months supply of homes, while those under $1,200,000 showed months of supply.

The market for resale condos in Richmond continued to experience pricing pressure with MOI of 6.88 months of supply at the end of June. And, this is not counting new condos that are available as presale condos in Richmond. Sellers for resale condos have to adjust their selling prices to attract buyers.

Richmond housing market outlook

Other than condos being under pressure to compete for buyers, the supply and demand for townhouses in Richmond are healthy when the market has just about 4.40 months supply of townhomes. The demand for detached homes over $1.5 million is weak with MOI showing 12 months of supply. But, it is a vast improvement compared to the past 2 months around 15.5 months of supply.

The most active market for detached homes in Richmond are homes under $1,000,000 and older homes with large lots over 7,500 sq ft. These homes with large lots are bought by new home builders and investors who are prepared to hold the homes as rental properties.

The current statistics for Richmond detached homes are:

Single family detached homes for sale – 877 homes, averaging 155 sales a month – around 5.7 months of supply.

241 (27%) of these homes are under $1,000,000, selling around 78 homes a month – 3.1 months of supply.

269 (31%) homes are between $1.0 to $1.5 million, with average sales of 47 homes a month – 5.7 months of supply.

372 (42%) homes are over $1,500,000 with average sales of 31 homes a month – 12.0 months of supply.

For more information on Richmond real estate, you are welcome to contact James Wong at 604-721-4817 or email James.

* months of inventory (MOI) is a ratio based on total supply against the average 3 months sale. A ratio of 6 MOI is considered a “market in balance”. A ratio much higher than 6 will result in home prices under pressure to go lower and a ratio much under 6 will result in home prices under pressure to go up.

Disclaimer: The writer assumes no liability whatsoever, for errors and/or omissions and any consequences arising either directly or indirectly from the use of information provided by this website. Any data provided are strictly for guidance and planning purposes only and may not be applicable due to ever changing market dynamics.